StockCall Review on Hovnanian and Beazer Homes: Residential Construction Stocks Recover

Mon Feb 25, 2013 8:01am EST

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LONDON,  February 25, 2013  /PRNewswire/ --

Homebuilders are having a good time with the uptick in housing sector. The
companies are earning higher revenue and are finally in the position to charge
premium pricing for new properties. Hovnanian Enterprises Inc. (NYSE: HOV)
showed high double digit growth in its stock price in the past one year.
Disappointing results shown by the industry leader Toll Brothers put a dampener
on the recovery, which is further compounded by the net loss announced by Beazer
Homes  USA  Inc. (NYSE:BZH), however, the overall scenario remains upbeat. 
StockCall analysts initiated preliminary technical research on Hovnanian
Enterprises and Beazer Homes  USA  Inc. These free reports are accessible by
signing today at

Hovnanian Enterprises Shows Higher Demand

Hovnanian Enterprises Inc. is set to announce its earnings on  March 6th. Its
peers have so far delivered rather disappointing results. At the very same time,
housing sector is making a recovery and Hovnanian Enterprises Inc. is expected
to show the results. The company has benefited from the decline in the number of
distressed properties in the market, which in turn, pushed demand for new
houses. It also resulted in new houses gain premium pricing. The free technical
analysis on Hovnanian Enterprises Inc. is available by signing up at   

Hovnanian Enterprises Inc. stock is up 80 percent up in the past 52 weeks and
the bull's run is likely to continue into the near future. The company reported
excellent revenue in the past year, on the back of improvement in the general
economy and the recovery in the residential sector. Hovnanian Enterprises has
thin margins but it makes up for that with higher volume. The company has shown
steady improvement in its revenue over the past couple of years.

Despite the recent run up in its stock price, the stock currently trades at the
forward Price/Earnings ratio of 11.85, which is lower than most of its peers',
indicating that the stock still has good upside left to it. Despite low margins,
the company's revenue growth is also promising.

Beazer Homes  USA  Inc. Announces Higher Revenue  

Beazer Homes  USA  Inc. benefited from buying distressed properties and renting
them out. Its stock is down 6 percent so far in this year. However, it has
attracted hedge fund buying. Citadel Investment Group currently owns about 1.4
million shares of the company as disclosed by its 13F filing. The institutional
buying shows their confidence in the future performance of the stock. Register
now to download the free research on Beazer Homes  USA  Inc. at   

Beazer Homes  USA  Inc. recently reported its first quarter results. While it
still incurred net loss, but it showed improvement on housing orders. The
company reported 31 percent increase in its revenue for the quarter to  $246.9
million, while its net loss stood at  84 cents  per share. Analysts'
expectations were pegged at  $260.5 million  and -$0.99  per share respectively.
It also showed 9 percent increase in average sales price of the houses. While
the company is not expected to return back to its heyday performance level any
time soon, but it is on the growth trajectory and is expected to keep performing
well. Its stock is expected to follow the suit.

Beazer Homes  USA  Inc. also reported improvement in housing orders. The trend
is likely to continue with the improvement in the economy in general and housing
sector in particular.

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